Exemption provisions of the German Small Investor Protection Act: A follow-up study

Abstract

The German Small Investor Protection Act of 2015 is intended to provide greater transparency for investors in the ‘gray capital market’ through stronger regulation. However, the Act also contains exemptions. These exempt both companies that finance themselves via a crowdinvesting platform and social, non-profit and church projects from the obligation to prepare a prospectus when financing via asset investments. Christa Hainz, Sarah Reiter, Ifo Institute, Lars Hornuf, Lisa Nagel and Eliza Stenzhorn, University of Bremen, present the regulations of the Small Investor Protection Act and analyze the effects of the exemptions about three years after the introduction of the law.